- Robert Savage, chief strategist at New York-based currency fund FX Concepts
Manufacturing activity among Eurozone factories shrank further in February, adding to concerns that the economy struggled to recover from the deepest recession in almost four years. A composite index of purchasing managers in both industries in the 17-nation currency bloc dropped to 47.3 this month, down from 47.9 in the prior month, falling deeper below the 50 threshold, which separates growth from contraction. Analysts had forecast a reading of 48.5. The report by Markit also showed that manufacturing activity in Europe's largest economy dropped to 54.1 in February, from previous month's reading of 55.7, posting sharpest decline since August. At the same time, a gauge of activity in the services sector shrank to 47.3 from 48.6 in January. Latest data are adding to fears that the region's economy is not on the path of a recovery yet.
"When you're in the midst of the recession, and some would argue, a depression in some places like Greece, it's hard to be optimistic," said Robert Savage, chief strategist at New York-based currency fund FX Concepts. The PMI data "are highlighting the problem."
"A steepening rate of decline in February is a disappointment, and suggests that the Eurozone is on course to contract for a fourth consecutive quarter in the first three months of the year," said Chris Williamson, chief economist at Markit.
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